Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/43836
Authors: 
Bertinelli, Luisito
Strobl, Eric
Zou, Benteng
Year of Publication: 
2005
Series/Report no.: 
Working papers // Institute of Mathematical Economics 369
Abstract: 
The relationship between growth and pollution is studied through a vintage capital model, where new technology is more environmentally friendly. We find that once the optimal scrapping age of technologies is reached, an economy may achieve two possible cases of sustainable development, one in which pollution falls and another in which it stabilizes, or a catastrophic outcome, where environmental quality reaches its lower bound. The outcome will depend on countries' investment path and their propensity to innovate in environmentally clean technologies, both of which are likely to differ across economies. Empirical results using long time series for a number of developed and developing countries indeed confirm heterogeneous experiences in the pollution-output relationship.
Subjects: 
Environmental quality
Sustainable economic development
Vintage capital model
EKC (Environmental Kuznets Curve)
JEL: 
O13
Q01
Q55
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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